Solicitor who helped clients break laws faces jail in US

FRAUD: former partner still wanted for trial by district attorney

Stuart Creggy - a former partner with now-defunct London firm Talbot Creggy & Co - was convicted of fraud in New York late last month and now faces a possible prison term.

Creggy was convicted - along with a Canadian lawyer - of assisting clients in violating securities, banking and tax laws, and using bogus corporations set up in offshore jurisdictions including Liberia, Belize and the Channel Islands.

He was arrested in London in 1998 following a joint UK and US investigation into money laundering.

Found guilty in New York following an 19-day trial last month, he is living on bail in the US with travel restrictions, and will be sentenced in January.

New York assistant district attorney, John Moscow, said: 'The whole defence was based on sleight of hand through the use of words, but the witnesses proved the guilt of the defendants.'

The district attorney's office has yet to make a formal sentencing recommendation to the court, but Mr Moscow said state prison is possible.

The district attorney's office is still attempting to extradite from the UK one of Mr Creggy's former partners at Talbot Creggy, Andrew Warren, alleging that he was involved in the same fraud.

Mr Moscow said Creggy's crimes are less serious crimes than those Mr Warren is accused of, where state prison - if he is convicted - will be a requirement.

Mr Warren is alleged to have been a member of the criminal enterprise alleged to have managed the securities frauds, which brought in more than $20 million.

Mr Warren was indicted in New York in June 1999, and the New York district attorney's office immediately lodged a petition for his extradition to the US.

The home secretary has approved the extradition, but Mr Warren's lawyers at London firm Barker Gillette confirmed that they are currently bringing a judicial review of this decision.

Jeremy Fleming